“Holiday Hijinks: Exposing the Scam Behind ‘Vacation Ownership’ Businesses”

The Hanoi Police, via their official portal, have issued a warning about the prevalent practice of buying and selling “Vacation Ownership” in Vietnam. They have uncovered deceptive tactics employed by certain companies to entice customers, taking advantage of their trust, lack of knowledge, and desire for complimentary gifts.

“Vacation Ownership” is a tourism model that offers pre-purchased vacation rights at one or more hotels or resorts for a specified period, typically seven days a year, either seasonally or consecutively for multiple years, as per the agreement between the parties.

The Hanoi Police have received numerous complaints from citizens alleging that some “Vacation Ownership” companies are engaging in fraudulent activities and appropriating assets. These companies employ a range of deceptive tactics to lure unsuspecting individuals.

The companies selling “Vacation Ownership” exploit customers’ trust and lack of knowledge, targeting their desire for complimentary gifts. They invite customers to attend conferences and seminars to receive free vacation vouchers for select tourist destinations and four-star hotels, assuring them that no purchase is necessary and that they only need to bring their identification cards for verification. Upon arrival at the company, customers are introduced to “Vacation Ownership” packages by customer care staff, with prices ranging from 200 to 900 million VND, depending on the duration of the vacation and the contract term (between 5 and 40 years).

During these events, consultants offer significant discounts for on-the-spot contract signings and deposits, along with promises of profitability through the transfer of vacation rights to others. Customers, rushed and without thorough contract review, often sign and deposit money without fully understanding the terms.

When customers do not receive the promised benefits or encounter additional annual fees, or when they are unable to resell their vacation rights, they seek to terminate their contracts and retrieve their money. It is at this point that they discover unfavorable contract clauses that protect the service provider’s interests, making it challenging to cancel the contract. Any disputes, as per the contract, must be resolved through civil courts.

The Hanoi Police have stated that these deceptive tactics create challenges for law enforcement in identifying criminal activity and protecting the aggrieved parties in the event of disputes or complaints.

Additionally, some “Vacation Ownership” companies evade contractual obligations by frequently changing their names, relocating their offices, or even ceasing operations altogether, making it difficult to locate their legal representatives. This has led to disputes, complaints, and gatherings of large crowds, creating complex public order and security situations.

In light of these developments, the Hanoi Police advise citizens to exercise heightened vigilance regarding “Vacation Ownership” offers. They recommend thoroughly researching the legal status of companies, carefully studying contracts, and paying close attention to clauses pertaining to customer rights, company responsibilities, contract value, associated costs, and contract termination. By being cautious and informed, citizens can protect themselves from potential harm.